Nippon Steel Recorded Tremendous Surge in Profits During Fiscal 2018

Posted on 14 May 2019

Source: Scrap Monster

Nippon Steel & Sumitomo Metal (NSSMC) Group declared operational and financial results for fiscal year 2018 ended March 31, 2019. The fiscal revenue surged to 6,177.9 billions of yen, as compared with 5,712.9 billions of yen in fiscal 2017. The profits too recorded notable jump from 288.7 billions of yen to 336.9 billions of yen over the year. This is despite several negative factors including natural disasters and rising material procurement costs.

The Steelmaking and Steel Fabrication segment restored its profit base during the fiscal. The company was successful in optimizing its production capabilities in Japan and overseas by introducing latest technologies and machinery. These initiatives included relining of a blast furnace at Hokkai Iron & Coke Corporation and of a coke oven at the Nagoya Works.

The consolidated total assets recorded an increase of ¥293.3 billion from the previous fiscal to total ¥8,049.5 billion as of March 2019. The consolidated total liabilities too were up by ¥210.9 billion to ¥4,442.1 billion. The cash flows from operating activities amounted to an inflow of ¥452. 3 billion, whereas the cash flows from investing activities amounted to an outflow of ¥381.8 billion during the fiscal. Meantime, cash flows from financing activities amounted to an outflow of ¥42.9 billion.

NSSMC foresees moderate growth to overall global economy in fiscal 2019. The Japanese economy is also expected to continue on its recovery path. It expects steel demand and steel market price to remain firm in Japan. The outcome of the U.S.-China trade war will determine the demand and steel market conditions overseas, it noted.